Asked by Faustine Hudson on Jun 12, 2024
Verified
As the price of ballpoint pens increases,the demand for felt-tip pens can be expected to decrease.
Price Increases
Price Increases involve a rise in the cost of goods or services over time, often measured by inflation rates.
Demand Decreases
A situation where the quantity of goods and services that consumers are willing and able to purchase at a given price level declines.
- Comprehend the principles of substitution and income effects as a reaction to alterations in prices.
- Learn the basic foundations of supply and demand theory, including how external factors lead to changes in the curves.
Verified Answer
SL
Stephanie LuceroJun 15, 2024
Final Answer :
False
Explanation :
Ballpoint pens and felt-tip pens are often considered substitutes. If the price of ballpoint pens increases, consumers might switch to buying more felt-tip pens, potentially increasing their demand, not decreasing it.
Learning Objectives
- Comprehend the principles of substitution and income effects as a reaction to alterations in prices.
- Learn the basic foundations of supply and demand theory, including how external factors lead to changes in the curves.
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